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Which One of the Following Statements Is Correct? Pre-Tax Return

Question 14

Multiple Choice

Which one of the following statements is correct? Pre-tax return on shareholders' equity is calculated as:


A) Operating profit as a percentage of share capital plus retained earnings.
B) Profit after taxation as a percentage of share capital plus retained earnings.
C) Profit before taxation as a percentage of share capital plus retained earnings.
D) Operating profit as a percentage of the total of share capital plus retained earnings.

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